Page 1

Profitability
Big Picture
Product
Change in features
market
growth
developmental stage
Profitability levels
Demand elasticity
Competition
Rivalry
New entrants
Substitutes
Consumers
Change in needs /
preferences
Segments
WTP
What is most important
Revenues
Price:
Premium pricing
Market power
Product mix
Volume
Volume per type of
product
Distribution issues
Supply chain / logistics /
inventory management
Costs
FC
VC
Capacity utilization
Short run / long run costs
Benchmark vs. competition
Weighing of different costs
components (COGS, etc.)
Page 2
Decrease in sales
Big Picture
Product
Change in features
market
growth
developmental stage
Profitability levels
Demand elasticity
Competition
Rivalry
New entrants
Substitutes
Customers
Change in needs /
preferences
Segments
WTP
What is most important
Revenues
Price:
Premium pricing
Market power
Price war
Product mix
Volume
Volume per type of
product
Distribution issues
Supply chain / logistics /
inventory management
Company
Core competencies /
resources
Positioning
Page 3
Expansion
Big Picture
Market
Competition
Consumer
Success Factors
Current profitability:
Volume
Prices
Product mix
Costs
Core competences and BTE
for other potential entrants
Potential benefits of
expansion
How to expand:
Available location /
resources
Proximity to customers
Technology
Capital costs
Labor costs
Time required to complete
expansion
Cost/benefit analysis
Risks
Alternative Opportunities
Acquisition
JV
Outsourcing / leasing
Franchise
Page 4
Market Entry
Big Picture
Market
Size and growth
Profitability
Developmental stage
Relevant trends
Competition
Rivalry
Substitutes
Core competences &
resources
Likely reaction to entry
Consumer
Drivers of purchase
behavior
Segmentation
Gap in needs
WTP

Success Factors
Investments and costs
Revenues
Fit of company with the
new market:
Core competences
Potential positioning
Source of volume (steal
share? Expand category)
Cost structure
(economies of scale /
scope)
BTE:
Product differentiation
Brand loyalty
Switching costs
Regulation
Access to distribution
channels
Other
Alternative methods of entry
Build/acquire/partner
Investments costs and
risks
Past experience has the
firm been successful in
penetrating markets in the
past?
Page 5
Industry analysis (how to increase market
share?)
Big Picture
Market
Size and growth
Profitability
Developmental stage
Relevant trends
Competition
Rivalry
Substitutes
Positioning
Consumer
Drivers of purchase
behavior
Segmentation
Gap in needs
Company
Revenues
Price
Volume
Costs
Core competences &
resources
Product
Features vs. competition
Opportunities and risks
Opportunities:
Expand to new product
categories
Change focus
Risks:
Competitors reaction
Loss of focus
Lack of fit between new
business and companys
competences

Page 6
Acquisition
Rationale for acquisition
Company (acquiring and
acquired)
Value chain
Core competences and
resources
Profitability
Market and competition
(acquiring and acquired)
Size and growth
Rivalry
Developmental stage
Relevant trends
Consumers of acquiring and
acquired
Potential synergies
Economies of scale
Economies of scope
Brand expansion
Technology
Access to distribution
channels / customers
Success factors
Investment
Revenue increase / costs
decrease
NPV analysis
Financing
Discount factor
Growth
Strategic aspects
If NPV positive
Organizational issues:
Realization of synergies
Changes that need to be
made pre-acquisition
Risks:
Likely response of
competition
Sensitivity for main
assumptions
If NPV negative
Alternatives to acquisition:
Other target
JV
Organic growth
In what conditions would
the acquisition be
economical